Monday, October 31, 2011

A little company with a little stock price and a little dividend … but listen up … Met-Pro Corp. is an income investor’s friend. Met-Pro, symbol MPR, costs less than $10 per share.

As you know, I rarely discuss stock price; I prefer to concentrate only on my chances of realizing more income every year from my income investments. However, for new income investors, a stock price of $10 is very appealing.

Let’s look at why MPR is a dividend machine. In 2007 MPR paid $.191 in dividends; in 2008 they increased the dividend to $.207. The company has increased the dividend every year for at least 5 years. If you own MPR by December 2, 2011, you will receive the quarterly dividend of $.071 on December 16, 2011.

On an annual basis, the dividend is now $.284. At the closing price of $9.27 on Friday, October 28, 2011, the yield is just over three percent. MPR earns $.41 per share which is almost twice the amount they pay out in dividends.

Income investors we have a found a very affordable and reliable dividend machine in MPR. Their low D/E ratio of .04 is another encouraging part of this picture. By the way, MPR is a provider of environmental control services. Consider this company for your growing list of dividend machines.

Friday, October 28, 2011

Image via Wikipedia Income investors, our dividend machine Chevron, symbol CVX has increased the dividend again. Even at yesterday's elevated closing price of $108.97 the yield is 2.97 percent. Using the price when I profiled CVX the yield is up to 3.58 percent.See my original post on CVX

Thursday, October 27, 2011

Is there any more telling proof that inflation affects income investors than the announcement that social security payments will increase and so will the amount you pay the government for Part B Medicare costs? If you are not yet old enough to know about Medicare, you may be surprised to learn that part of your social security income is used to pay for your Part B medical costs. If you are old enough to be on Medicare, you already know that the amount your pay for Part B medical costs increases pretty regularly.

Monday, October 24, 2011

Dividend Machine for October 24, 2011 Hasbro Inc., symbol HAS

Writing this blog on investing for income is such fun and who does not like to have fun? Hasbro Inc, symbol HAS, is company that makes money selling toys and games. Hasbro, Inc has been engaged in proving not only fun but also a steadily increasing dividend for quite a while now. This is our income investors’ dividend machine for October 24, 2011

Tuesday, October 18, 2011

Anyone who reads this blog knows I concentrate on investing for income: yet every once in a while I opine on other areas of investing. Today, my focus is pooled investments. Pooled investments could mean you and your brother in law buy a rental property. You share your investment with your partner and you share the work. At least you have 50 percent of the input. Perhaps it does not

Monday, October 17, 2011

Income investors who follow this blog know that my sole purpose is to help you invest for income using stocks and bonds. My intent is to find one company per week that meets all four of the criteria necessary to classify it as a dividend machine. Those four criteria are that each company earns more money that it pays out in a dividend; pays a dividend of at least three percent; has increased the dividend payout every year for at least five years; and has a debt to equity ratio less than one or within the standards of the industry.

Monday, October 10, 2011

Defensive times require investing in defensive stocks. We have already added Kimberly Clark and General Mills so you could expect Proctor & Gamble, symbol PG not to be far behind in our dividend machine list. Everybody knows about this company. But do you know they have paid uninterrupted dividends since 1890? Think of all the trouble the world has been through during that time frame and you can understand why conservative, income investors have made PG part of their portfolios.

At the close on Friday October 7, 2011 PG’s stock price was $63.91. PG earns $3.93 per share and pays out $2.10 per share. This payout is a dividend yield of 3.30%. Every year for at least 5 years, the company has increased the dividend and increased it substantially. They are a solid company with a debt to equity ratio of only .47.

You can expect a quarterly dividend of $.525 in November. Consider PG as one of the companies for the income-producing portion of your investment portfolio.

Thursday, October 6, 2011

Finding Money in COP

This brutal market has some recent life and we income investors are always looking for ways to increase our income. I know it is hard to stomach stock price reductions but you have not lost money unless you actually sell.

I sell when fundamentals change such as a company reducing or stopping a dividend or taking on so much debt that I get nervous about their balance sheet or debt to equity ratio. I rarely sell on price alone.

When I was in “the business”, I liked to suggest to my clients a troika (three companies) of income stocks just to cover all bases. For instance, I might choose three industrials, three chemicals, three pharmas, or three banks depending on the client's needs. That strategy worked out well.

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Covered Call Opportunities

Square, symbol SQ, is my current favorite stock that is not a dividend machine. To turn it into an income investment, I use SQ's volatiity to buy when it dips and sell calls. See the table above. Note that this call is not included in the post published on 12/12/18 M*

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TheMoneyMadam's Story

My income investing success came from my experience managing my and other people's money since 1993. Successful income investing requires discipline. In this blog I provide specific investments based on my principles of conservative income investing. I hope to help the thousands or even millions of people who have saved and want to invest their nest eggs to retire with income that grows. M* MoneyMadam

Disclaimer

Information on this blog does not constitute investment advice. Review or mention of any stock, bond, or other investment shall not be considered a buy or sell recommendation. Everything in this blog is the opinion of the author and no warranties are expressed or implied. M*MoneyMadam.